Question 1

The ____ budgets are organizational budgets that outline quantities of product/service to be produced and what resources will be used.
A) operating
B) capital expenditure
C) revenue
D) cash-flow
E) nonmonetary

Accepted Answer

The answer of The ____ budgets are organizational budgets that...

Question 2

The percentage of graduates who find a job within six months of graduation is a ____ control for colleges and universities.
A) preliminary
B) screening
C) postaction
D) cybernetic
E) feedback

Accepted Answer

The answer of The percentage of graduates who find a...

Question 3

Politicians transform information from many sources into decisions about policies for the area they govern. When politicians follow poll results after the passage of legislation, the politicians are using ____ control.
A) preliminary
B) screening
C) postaction
D) cybernetic
E) feedback

Accepted Answer

Postaction control occurs when politicians use poll results after legislation has been passed to determine if the policy is supported by their constituents. This allows for adjustments to be made if necessary. Preliminary control involves taking actions before implementing a policy, screening control involves using filters to decide which information is important, cybernetic control involves using feedback loops to make continuous adjustments, and feedback control is another term for postaction control.

Question 4

Which of the following is a type of financial budget that deals with forecasting the organization's assets and liabilities in the event all other budgets are met?
A) Cash-flow
B) Liquidity
C) Capital expenditure
D) Balance sheet
E) Pro forma

Accepted Answer

The balance sheet is a financial budget that provides an overview of the organization's assets and liabilities, including a snapshot of the organization's financial position at a specific point in time. It deals with forecasting the organization's assets and liabilities in the event all other budgets are met. The cash-flow budget deals with forecasting the organization's cash inflows and outflows, the liquidity budget deals with ensuring the organization has enough cash to meet its obligations, the capital expenditure budget deals with forecasting the costs associated with acquiring and maintaining assets, and the pro forma budget deals with forecasting future financial performance based on historical data.

Question 5

The University of Michigan develops a budget that shows its projected income from sources such as the state of Michigan, tuition and fees, alumni contributions, and research grants. This is an example of a(n) ____ budget.
A) revenue
B) output
C) capital expenditures
D) balance sheet
E) cash-flow

Accepted Answer

The University of Michigan develops a budget that shows its projected income from various sources, which refers to the revenue budget.

Question 6

At the end of each fiscal year, managers note in their performance reports if they are under budget. This is an example of a(n) ____control.
A) labor
B) operations
C) information
D) finance
E) revenue

Accepted Answer

This is an example of finance control because it involves tracking and evaluating expenses and revenues in relation to the budget.

Question 7

Amazon asks customers to rate their experience with the product and service. This is an example of ____ control.
A) preliminary
B) screening
C) postaction
D) cybernetic
E) feedback

Accepted Answer

The answer of Amazon asks customers to rate their experience...

Question 8

Screening controls
A) take place during the transformation process.
B) involve interviewing potential employees.
C) are the same as preliminary control.
D) determine organizational flexibility.
E) determine accuracy of organizational standards.

Accepted Answer

Screening controls are a type of internal control that takes place during the transformation process, aiming to ensure that the ongoing operations meet the set standards and are on track towards achieving the organizational goals.

Question 9

Budgets
A) help managers coordinate resources.
B) help define standards for control.
C) provide guidelines about resources.
D) enable the evaluation of the performance of managers.
E) All of these choices

Accepted Answer

Budgets help managers coordinate resources by allocating funds to different departments or projects. They also help define standards for control by setting specific targets or goals that must be met. Budgets provide guidelines about resources by identifying how much money can be spent on different activities. Finally, budgets enable the evaluation of the performance of managers by comparing actual results to the budgeted amounts. Therefore, all of these choices are correct.

Question 10

Politicians transform information from many sources into decisions about policies for the area they govern. When politicians "float an idea" by having a staff member leak it to the press to gauge reaction, the politician's staff is using ____ control.
A) screening
B) preliminary
C) postaction
D) cybernetic
E) yes-no

Accepted Answer

"Preliminary" control involves testing an idea before making a final decision. In this case, the politician's staff is leaking an idea to the press to gauge public reaction before making a final decision about whether or not to pursue the policy proposal.

Question 11

As the product being produced becomes more complex, which of the following types of operations controls would logically become more important?
A) Preliminary
B) Screening
C) Postaction
D) Preliminary.
E) Feedback

Accepted Answer

The answer of As the product being produced becomes more...

Question 12

A plant manager is told that she has 8,000 labor hours to allocate in a week. This is an example of a(n) ____ budget.
A) operations
B) financial
C) nonmonetary
D) output
E) expense

Accepted Answer

The answer of A plant manager is told that she...

Question 13

Which of the following is NOT a type of operating budget?
A) Production
B) Sales
C) Expense
D) Profit
E) Revenue

Accepted Answer

The answer of Which of the following is NOT a...

Question 14

Postaction control is most appropriate when the
A) time between goal setting and attainment is short.
B) product being produced is nonperishable.
C) product being produced is simple and routine.
D) production process is very complicated.
E) volume of product output is extremely large.

Accepted Answer

The answer of Postaction control is most appropriate when the
A)...

Question 15

Once a year Boy Scout troops submit financial reports describing income and expenditures. This is an example of ____ control.
A) preliminary
B) screening
C) postaction
D) cybernetic
E) feedback

Accepted Answer

The submission of financial reports once a year is a type of postaction control, which involves taking corrective action after the event has occurred. In this case, the Boy Scout troop is reporting on its past income and expenditures, rather than taking action to prevent financial issues from arising in the future (such as through preliminary or screening controls). Cybernetic and feedback controls involve ongoing monitoring and adjustment of processes, which is not necessarily occurring in this scenario.

Question 16

Deirdre is a freelance editor. She knows how many chapters she needs to edit and approximately how long each chapter takes. She is calculating what she needs to do to meet her next deadline. She is making a ____ budget.
A) labor
B) production
C) space
D) balance sheet
E) capital expenditure

Accepted Answer

Deirdre is calculating the amount of time (labor) she needs to complete the editing work in order to meet her deadline, so she is making a labor budget. The other options - production, space, balance sheet, and capital expenditure - are not applicable to her situation.

Question 17

Which of the following is NOT a major form of operations control discussed in the text?
A) Preliminary
B) Screening
C) Postaction
D) Functional
E) None of these choices

Accepted Answer

The major forms of operations control discussed in the text are preliminary, screening, and postaction. Functional is not mentioned as a form of operations control in the text.

Question 18

Which of the following statements does NOT describe a weakness associated with budgeting?
A) Some managers apply budgets too rigidly.
B) Developing budgets can be very time consuming.
C) Budgets link planning and controlling.
D) Budgets may limit innovation and change.
E) Budgets may make it impossible to procure funds to take advantage of an unexpected opportunity.

Accepted Answer

This statement describes a strength of budgeting, rather than a weakness. Budgets serve as a bridge between the planning and control functions in an organization, helping to ensure that resources are allocated and utilized in a manner consistent with overall strategic objectives. However, the other statements (A, B, D, and E) describe potential weaknesses associated with budgeting, including inflexibility, time consumption, potential to stifle innovation, and difficulty responding to unexpected opportunities or challenges.

Question 19

Politicians transform information from many sources into decisions about policies for the area they govern. When politicians follow poll results during legislative debate, the politicians are using ____ control.
A) preliminary
B) screening
C) postaction
D) cybernetic
E) feedback

Accepted Answer

Screening control involves filtering and analyzing information from various sources to make decisions. Checking poll results is an example of screening control as politicians use this information to make decisions during legislative debates. Preliminary control involves setting standards and goals before starting an activity, postaction control involves evaluating results after an activity, cybernetic control involves using feedback to adjust ongoing activities.

Question 20

Which of the following is NOT a type of financial budget?
A) Cash-flow
B) Capital expenditure
C) Balance sheet
D) Cash
E) Profit

Accepted Answer

The answer of Which of the following is NOT a...

Quiz 19: Basic Elements of Control

The ____ budgets are organizational budgets that outline quantities of product/service to be produced and what resources will be used.

The percentage of graduates who find a job within six months of graduation is a ____ control for colleges and universities.

Politicians transform information from many sources into decisions about policies for the area they govern. When politicians follow poll results after the passage of legislation, the politicians are using ____ control.

Which of the following is a type of financial budget that deals with forecasting the organization's assets and liabilities in the event all other budgets are met?

The University of Michigan develops a budget that shows its projected income from sources such as the state of Michigan, tuition and fees, alumni contributions, and research grants. This is an example of a(n) ____ budget.

At the end of each fiscal year, managers note in their performance reports if they are under budget. This is an example of a(n) ____control.

Amazon asks customers to rate their experience with the product and service. This is an example of ____ control.

Screening controls

Budgets

Politicians transform information from many sources into decisions about policies for the area they govern. When politicians "float an idea" by having a staff member leak it to the press to gauge reaction, the politician's staff is using ____ control.

As the product being produced becomes more complex, which of the following types of operations controls would logically become more important?

A plant manager is told that she has 8,000 labor hours to allocate in a week. This is an example of a(n) ____ budget.

Which of the following is NOT a type of operating budget?

Postaction control is most appropriate when the

Once a year Boy Scout troops submit financial reports describing income and expenditures. This is an example of ____ control.

Deirdre is a freelance editor. She knows how many chapters she needs to edit and approximately how long each chapter takes. She is calculating what she needs to do to meet her next deadline. She is making a ____ budget.

Which of the following is NOT a major form of operations control discussed in the text?

Which of the following statements does NOT describe a weakness associated with budgeting?

Politicians transform information from many sources into decisions about policies for the area they govern. When politicians follow poll results during legislative debate, the politicians are using ____ control.

Which of the following is NOT a type of financial budget?